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In this tutorial, Matthew demonstrates how to create a licensing agreement using legal templates. He guides viewers to legaltemplates.net, where they can find various business forms. He suggests clicking on "Business Forms," scrolling to find the "Licensing Agreement," and selecting Texas to create the document. Matthew discusses key components to include: the owner of the intellectual property, the licensee (Mr. Add), and the specific intellectual property involved. He also explains the type of license to be granted, whether exclusive or non-exclusive, and encourages viewers to specify the purpose of the license if desired.